Forex trading is one of the biggest sources of financial earnings in the world, so the forex market is the largest financial market at this time. It is a dispersed market that functions globally by the participants through online communication on their phones or desktops, so understanding the market times is necessary. Continue reading to learn more about the forex market times, why it is open 24/7 and more.
What is the reason behind this around-the-clock timing?
As the Forex market is an international market, it is open around the clock to adjust between different time zones. Another reason is that all the trade is done online through electrical communication, not through a physical shop or center that will have a definite closing time. Even if the trade of a currency closes at a particular place, for example New York, it will continue to be traded around the world.
Securities such as domestic stocks, bonds and commodities are irrelevant or necessary in the international arena and therefore the issuer does not have to trade outside of its normal business days in its home country. Trading demand in this market is not high enough to justify an open 24 hours a day due to the focus on the domestic market, meaning that very few stocks will be trading at 3 am in the United States.
Understanding Forex market hours
International foreign exchange markets consist of banks, trading companies, central banks, investment management companies, hedge funds, Forex brokers and investors around the world. Because this market operates in several time zones, it can be accessed at any time except weekends.
The international foreign exchange market is dominated not by one exchange, but by a global network of stock exchanges and brokers around the world. Forex market times are based on the fact that trading is open in every participating country. If the time zones are the same, the general time zone for each region will be as follows:
New York 8am to 5pm EST (1pm to 10pm UTC)
Tokyo 7pm to 4am EST (12am to 9am UTC)
Sydney 5pm to 2am EST (10pm to 7am UTC)
London 3am to 12 noon EST (8pm to 5pm UTC)
Your Forex broker
Your broker offers a trading platform with a specific time period. When focusing on market clocks, you should ignore your platform’s time periods, in most cases it doesn’t matter, and use universal clocks (EST / EDT) or Market Hour Monitor instead to determine the trading sessions.
What is the best time to trade?
Typically, you want to avoid trading if only one trading session is open and you would rather wait for the trading sessions to overlap.
When two major financial centers open, the number of traders who actively buy and sell this currency increases significantly. The best time to trade forex is based on the currency pair trade. Most of the traffic activity for individual currency matches takes place when trading sessions overlap for individual currencies.